By Ricardo Zozaya Valdés, from Instituto Lizardi High School in Zihuatanejo, Guerrero, Mexico*
Foreign remittances are the money sent by immigrants to their native countries.
When United States President Barak Obama was still in power, he criticized Donald Trump’s attitude for threatening that if he was elected, his new government it would impede the remittances of Mexican-Americans if Mexico did not pay for the wall between the two countries.
Now, with Trump the U.S. president, this may become a reality. According to Congressman Mike Rogers, Republican from Alabama who is the promoter of this measure, about 1 billion dollars would be collected per year from impeding foreign remittances to Mexico.
For many Americans who need to send money back to families in Mexico, this measure is an attack or threat to their people. According to the Republicans, if this measure is approved, it could result in a considerable amount of money needed to build the wall. Republican Donald Trump has promised to stop foreign remittances to Mexico if our country does not pay for the construction of the wall.
Donald Trump has threatened to hold back remittances in two ways: 1) Establish a tax of between 2% and 5% on the money that is transferred, and 2) Demand a document of legal immigration status from each person who transfers money from the United States to Mexico.
Trump may threaten to put a tax on remittances, but the Mexican government will not sit idly by; they had a plan to prevent remittances from becoming a complication. The Mexican government, with the help of the legislature and the bankers, developed a plan that will reduce the costs of sending remittances and, in this way, compensated any tax established by Trump, said Mario Di Costanzo, president of the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
To reduce the transfer cost, the finance and foreign affairs secretaries are negotiating with the Association of Banks of Mexico (ABM) to allow bank accounts to be opened on the Internet, with no limit of resources, which will not result in a cost for users who send money to Mexico.
In 2016, $26 billion dollars in revenue reached Mexico.
*Editor’s Note: Ricardo Zozaya Valdés is a senior at Instituto Lizardi in Zihuatanejo, Guerrero, Mexico. This article is part of his final examination for an English writing class taught by the editor of this publication. Congratulations, Ricardo!
TresMonosSabios. (2017). El problema de las remesas que llegan de EUA a México. 11/22/17, from TRESMONOSSABIOS Website: https://tresmonossabios.com/2017/02/17/el-problema-de-las-remesas-que-llegan-de-eua-a-mexico/
(2016). CON TRUMP ESTÁN EN RIESGO LAS REMESAS DE LOS MEXICANOS. 11/22/17, from Expansión Website: http://expansion.mx/economia/2016/11/10/trump-pone-en-riesgo-las-remesas-de-los-mexicanos
(2017). Así es como México va a blindar las remesas de las amenazas de Trump. 11/25/17, from Huffpost Website: http://www.huffingtonpost.com.mx/2017/03/07/asi-es-como-mexico-va-a-proteger-las-remesas-ante-las-amenazas-d_a_21875388/